Name:

Instructor:

Course:

Date:

Sustainable competitive advantage has more merits as compared to other methods and that is the reason why many companies are adopting it. It is normally slow but steady in the sense that competitors hardly discover what you are doing, and even if they do so, you will be doing something different, if not added more features to your products. It is all about making a clear distinction between the quality of your services and products from your competitors in the market. This becomes even more fruitful if your competitors give up. This therefore calls for a high degree of invention. As Michael says (1), innovation is very vital element for survival and growth of firms. It is true that superior organization is one of the strategies in sustainable competitive advantage but this should be given a last consideration in the market as there are many more other cheaper methods to be employed and the same results if not better.

Basing our argument on Wal-Mart stores, let us analyze how superior organization should not be the preferred sustainable sources of competitive advantage. Though it started as a small company, Wal-Mart is now one of the big business enterprises in many countries with many outlets and dealing in many brands of goods. It is majorly a service provider company and gains its prominence from being low priced all the time and that its customers get all they want from the same roof hence saving them time.

The ability of Wal-Mart to lower its prices to the extent of sending away its competitors is based on its large scale operation and  hence it commands more discounts from its suppliers as it is a bulky buyer. This is in line with what McElhatton says that creating a balance in the experience customers get from your products and the marking you do (16). Besides this, its strength in human resources is week since it has unskilled human resources and all these are not allowed to form trade unions. This is in order to cut down its operation costs and concentrate on maximizing profits.

Now that the other alternative of not physically buying from a shop is to buy from internet, Wal-mart has capitalized on this and now people buy directly from it using its website. This means that by the time this method will no longer be use, because of change in technology, Wal-Mart would have had good amount money from it and changed to some other method. This indicates that here the ability to get more and more customers is well coordinated from all means. It therefore goes in line with the argument form roadmap to success, that we should aim in mind at the same time connecting emotionally so as not to miss the opportunity. (24)

In nutshell Wal-Mart is a good example where superior organization should be considered last when it comes to sources of competitive advantage. It has instead employed other cheaper methods like lowering prices and being one roof shop. This enhances it to enjoy many advantages like buying cheaply from its suppliers. It also tactfully evaded the effects of labor unions .Generally, Wal-Mart policies pleases its customers hence maintaining them and at the same time keeps it rivals away.

References

McElhatton, N. 2010. An extra shot of marketing. Marketing, February 3, 16-17.

Poletti, M., B. Engelland, and H. Ling. 2011. An Empirical Study of Declining Lead Times: Potential Ramifications on the Performance of Early Market Entrants. Journal of Marketing Theory and Practice 19, no. 1, (January 1): 27-38.

Roadmap for Success. 2010. Restaurant Hospitality, December 1, 22-24+.